Macro Matters
Bank of Canada cuts rates, sees weaker economy in 2024

By Promit Mukherjee and David Ljunggren
July 24, 202412:03 PM EDT • Updated a day ago

Summary
• BoC cuts key interest rate by 25 basis points to 4.5%
• Trims 2024 GDP forecast to 1.2% from 1.5%
• Central bank says future rate cuts to be data-dependent

OTTAWA, July 24 (Reuters) - The Bank of Canada on Wednesday trimmed its key interest rate by 25 basis points for the second month in a row, bringing it to 4.5%, and said more reductions in borrowing costs were likely if inflation continued to cool in line with forecasts.

The central bank had kept its policy rate at a two-decade high of 5% for almost a year in a bid to combat high inflation. ... In contrast, the European Central Bank kept rates unchanged last week after it cut them in June.

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